How a Home Loan is Securitized | Flow Chart

image

what happens to the note that is signed as part of a home loan

What the chart doesn’t address is what happens to the mortgage. The mortgage was separated from the note and assigned to Mortgage Electronic Registration Systems, Inc. as part of the original mortgage document. Because the securitized loans would be bought and sold, the mortgages weren’t recorded in the public record where a new assignment would have to be recorded everytime the securitized note changed ownership. The mortgages were assigned to MERS, which was supposed to maintain records of who owned the mortgages. Recent information indicates MERS did not maintain a chain of title but only a record of the current owner, and in some cases has no record of the owner only the servicer.

Advertisements

One thought on “How a Home Loan is Securitized | Flow Chart

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: